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Domestic versus Cross-border M&A in the high tech sector: the acquiring firm's performance: An analysis of acquiring firms that are listed on the Swedish stock exchange
Jönköping University, Jönköping International Business School, JIBS, Economics.
Jönköping University, Jönköping International Business School, JIBS, Economics.
2017 (English)Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The outcomes of M&A transactions can vary greatly depending on the different dynamics of the deal. This research paper investigates the impact of the origin of the target firm (domestic or cross-border M&A) on the acquiring firm’s performance. We analyze 150 M&A deals of acquiring firms operating in the Swedish High Tech Sector, between 06-03-2007 and 06-03-2017. An event study was conducted in order to highlight the abnormal return associated with the M&A announcement. In order to do this, a linear multiple regression analysis is applied to find out what factors that have an impact on the cumulative abnormal return (CAR) around the announcement of the M&A, where we control for variables such as (1) experience of undergoing M&A transactions, (2) relative size between the two firms and (3) market capitalization. This research generates statistically significant and positive abnormal returns for the acquirers’ performing cross-border M&As, while the opposite holds for domestic M&As. Additionally, the variable experience was found having a positive impact on the CAR. While the relative size and market capitalization both influenced CAR negatively, specifically in cross-border M&A. 

Place, publisher, year, edition, pages
2017. , p. 58
Keywords [en]
M&A (merger and acquisition), cross-border, domestic, performance
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-35699ISRN: JU-IHH-FÖA-2-20170335OAI: oai:DiVA.org:hj-35699DiVA, id: diva2:1104381
Subject / course
IHH, Business Administration
Supervisors
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Available from: 2017-06-09 Created: 2017-06-01 Last updated: 2017-06-09Bibliographically approved

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CiteExportLink to record
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Cite
Citation style
  • apa
  • ieee
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  • vancouver
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Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
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Output format
  • html
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  • asciidoc
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